New Performance appraisal at FoodPak Pvt Ltd.!
Vikas had recently joined as a Sales Manager in one of the largest industrial engineering firms,
EoodPak Pt Ltd. in India. The firm does turnkey projects manufacturing and installing food
processing and packaging machineries for its clients. When Vikas joined there was no formal
anpraisal process as the firm was relatively small with about 300 office staff. While the informal
aporaisalwas possible (though not always liked by all) in a small company context, with its growth
and expansion, management felt the need to install a formal appraisal process. Vikas was asked to
nlan and implement it in his unit (along with few managers in his unit) and depending on the
Success, it would be rolled out company wide. All the managers asked their subordinates to put in
their best to meet the company expectations as a formal appraisal is being put in place. Vikas made
aguick study of all the jobs and found certain common expectations across the jobs for his
performance criteria. He came out with the following performance parameters and corresponding
department
rating scale. At the end of the year the following criteria was used in evaluation of the
employees.
Criteria
Below standards
Meets standards
Above standards
Quantity of work
Quality of work
Innovativeness
People management
turn asked allof the managers in the department to
He shared with his departmental head and he in
bell curve was used in placing employees in 4
use this format for rating their subordinates. A
average performer - 30%, Average performer
different categories. Top Performer - 10%, Above
with top
the appraisal are used for paying variable pay
40%, Below average- 20%. The results of
- 30%,
performer
current salaries, above average
performers getting more than 50% of their
average
with below
used in promotiondecisions
Average-10% and Below average-Nil. It was also
a mini
However after the first year process, there was
performers asked to look out for other jobs.
generally
accusations of favouritism and unfair process and
revolt by employees. There were various
were Vikas, what
the new appraisal system is a disaster. If you
the feeling was that introduction of
Would you have done and how would you
go about the process?
for class discussion
Prepared by Prof TN Krishnan as a basis